Globalization: International Trade and United States Essay

Submitted By Colpap123
Words: 2557
Pages: 11

Japan is the land of the rising sun, well-known for its beliefs in tranquility and appreciation of nature. Japan is a very technologically advanced country. It has the third highest gross domestic product rate among all the countries in the world, with a total of $5.963 trillion or ¥586.163 trillion in the year of 2012. In the same year the average rate / amount per capita or per person was $46,736 or ¥ 4.594 million. Japan is series of islands; this doesn’t necessarily mean it has well enough land to cultivate. Having mountainous area of land, the Japanese are very limited to what they can actually grow. Trading is a big part of Japans economy, they import many goods from many different countries, and they aren’t the biggest agricultural exporters.
Since Japan is huge with technology, Japan exports motor vehicles, steel machinery, and electronic equipment. Many of the quality vehicles that are seen every day like Mitsubishi and Toyota are made in Japan. Its electronic exports include computer equipment and television sets. Japan has a very firm and active economic relationship with the United States that was reconstructed after World War II, around the 1980’s, and has lasted until now. Japan is one of the most pro – American countries in the world, along with being one of our closest allies. In 2013, the United States had an 81% positive viewing on Japan, which represents the healthy relationship that is present. Japan and the United States have a strong and mutually advantageous relationship with one another. They are two majors’ economic powers, accounting for over 30% of world domestic product, a significant amount of international trade of goods and services, and a major portion of international investment. Although both countries are highly interactive amongst each other through trade of goods and services, they are huge markets for each other’s exports and serve as important sources of imports. Japan and the United States are closely connected via capital flows. Japan being one of the major foreign sources of financing of the United States national debt. The United States is also the origin of much of the foreign investment in Japan. Natural disasters such as the tsunami, earthquakes, and nuclear accidents occurring in Japan in the last five years have taken a drastically negative affect on the economy, along with the country itself, and Japan has been working to reconstruct it along with financial help from the United States. The Trans – Pacific Partnership (TPP) is also an enormous factor in the economic relationship between the two countries. (The Trans- Pacific Partnership Agreement) The Tran – Pacific Partnership is a free trade agreement currently being negotiated between thirteen countries, two of them specifically being the United States and Japan. Japan has made a bilateral proposal to eliminate tariffs on 90% of U.S imports. (Kyodo, Japan offers TPP tariff cuts for nearly 90% of U.S. goods) If properly negotiated amongst the representatives of these respective countries, a huge factor of economics and trade will occur and will strengthen the relationship between the United States and Japan even further. The World Trade Organization (WTO) is a worldwide organization that ensures negotiated between its members run progress smoothly, and that the rules and regulations regarding international trade are properly applied and enforced. There are 159 members of the World Trade Organization, two of them being the United States and Japan. Japan became a member of the World Trade Organization on January 1st, 1995. The World Trade Organization has strict guidelines that must be followed by every member. Some regulations that are involved are each country’s rights to implement standards on what is being imported to their country, based on human and plant life, along with consumer interests. A code of good and ethical practice is also a rule for government and non – governmental bodies of industry to prepare…